Tax perks entice more UK citizens to Portugal

Aug 24, 2021

A record number of Brits decided to make Portugal their permanent home in 2020, enticed by the country's low income tax rates for non-habitual residents.

The number of Brits in Portugal swelled by 34% according to the country's borders and immigration service, bringing the total number of British residents in the country to 46,238 - the second largest group of foreign residents after Brazilians.

Brexit has been a huge driver. Before 2016 the numbers either shrank or grew by a maximum of 4% a year, but they've been shooting up since then.

But it's the non-habitual resident status created by the Portuguese Government that is especially practical for British expatriates.

This tax system grants a 10% tax rate or a total exemption for 10 years, if certain conditions are met.

Foriegn income, including pensions, rental income, real estate gains and dividends from the UK are tax-exempt under the system, meanwhile.

The scheme is ending in certain areas from January 2022, including Lisbon, Porto and Algarve coast - where most foreigners traditionally settle - in a move to push property investment towards rural areas.

Talk to us about personal tax planning .

Make the switch to us

Choosing StationOne means opting for a service where excellence, expertise, and a personal touch converge. Our rates reflect the quality and dedication we bring to every interaction. We are not just about the numbers; we're about fostering growth, ensuring compliance, and paving the way for your business's prosperity.

Get in touch

Fancy a new accountant? Contact us for tailored financial guidance.

Tell us about your business

Share your business needs; we'll provide the bespoke financial solutions.

We'll take it from here

Trust us to lead your financial operations to success.

"Enables us to be more profitable"

"Having been a client for many years we have learned how important Food and Drink GP’s are to the running of our restaurants and getting these to the correct %’s every week enables us to be more profitable and then be able to concentrate on managing other costs"

StationOne favicon3

How can we be of service?

Embark on your journey towards financial excellence with StationOne. Let us show you what it means to have not just an accountant, but a committed partner in your corner.